Weekly Technicals 24th-30th December 2012

Supports – 1.3175 1.3010 1.2930
Resistances – 1.3290 1.3440 1.3600
Price range: 1.3000 – 1.3300

Trading call

EURO ended the week in positive territory, higher by 0.18%. The currency pair rallied more than 1.1% during the early sessions of last week before giving back most of the gains on Friday.

The trend remains bullish with crucial supports at 1.3175, close below which EURO can slide back to 1.3010, which is the lower end of the bullish short- term channel while the major resistance is placed at 1.3290, higher end of the bullish short- term channel, close above which the rally will extend to 1.3440 followed by 1.3600.

Short, medium and long- term trend – Bullish

Short EUR/USD-
If the currency pair closes below 1.3175 OR at the break of 1.3125 with a stop at 1.3190 for a profit target of 1.3025.
Long EUR/USD-
At 1.3025 with a stop at 1.2950 for a profit target of 1.3150.

If the pair closes above 1.3300 or at the break of 1.3350 with a stop at 1.3275 for a profit target of 1.3450.

Supports – 1.6100 1.6060 1.5960
Resistances – 1.6310 1.6360 1.6470
Price range – 1.6100 – 1.6360

Trading call

Pound sterling closed absolutely flat for the week, but not before rallying to a 0.87% gain early last week. The short and medium term trend remain bullish with important supports placed at 1.6100 followed by 1.6060. Break and close below these supports, the pair could drift lower to 1.5900- 1.5950. Important resistances at 1. 6310- previous highs recorded in April and September 2012, followed by 1.6360, which is the top end of the medium term bullish channel.
Short and medium term trend remain bullish, while the long term trend remains bearish
Long GBP/USD-

At 1.6100 with a stop loss at 1.6040 for a profit target of 1.6275.

If the pair closes above 1.6360 or at the break of 1.6390 with a stop at 1.6340 for a profit target of 1.6470
Short GBP/USD-
At 1.6030, with a stop loss at 1.6080 for a profit target of 1. 5960

Supports – 83.60 83.00 80.85
Resistances – 84.75 85.50 86.10
Price range – 83.00 – 85.50

Trading call

The yen ended the week with losses of 0.88%, bouncing back from the lows of 84.61 with losses of 1.36% recorded earlier in the week. The currency pair also registered a new 20- month high.
Important resistances positioned at 84.75 followed by 85.50, which are the top ends of the medium and long term bullish channels while important supports are placed at 83.60- bottom end of the short- term bullish channel followed by 83.00- breakout level.

As long as the support at 83.00 holds, USD/JPY should rally to 85.50. If USD closes below 83.00, expect a quick and sharp fall in the currency pair to 80.75- 81.00 levels.
Short, medium and long term trend remains bullish

Hold on to long USD/JPY positions initiated at 83.30 with a trailing stop loss at 84.00 for a profit target of 85.00. If stops are triggered, initiate fresh long positions at 83.25 with a stop at 82.50 for a profit target of 84.50

Short USD/JPY-
If the currency pair closes below 83.00 or breaks 82.40, with a stop at 83.25 for a profit target of 81.00